TORRINGTON >> The Warner Theatre's board of directors announced Tuesday that they had accepted the resignation of their board president, Ken Merz, who made final recommendations for solving the theatre's financial problems before stepping down from his post Monday.

Merz resigned through a letter to the board on Monday evening in which he also recommended the immediate establishment of a "Warner Recovery Team" to focus on the development and execution of a plan to reestablish the Warner's reputation and standing in the theatre industry.

"For the past 16 years, I have worked in partnership with colleagues and friends to secure, restore and build a future for the Warner Theatre," wrote Merz in his letter. "I care deeply for the organization and continue to believe in its potential. With a combination of steady leadership from existing board members and friends, along with new blood and new ideas, I am certain the best days of the Warner lie ahead."

According to a Tuesday press release, the recovery team, which will consist of existing board members and external individuals, will be charged with developing a multi-pronged planning process to address leadership, governance, finance and programming, while also advising the board on a strategic course toward recovery and stabilization.

Following Merz's resignation, the board approved the appointment of Louisa Roraback, of Goshen, to serve as interim board president until June 30. Roraback has served on the Warner board since 2001, most recently as vice president.

"I would like to express my sincere thanks and appreciation for the years of hard work and support Mr. Merz provided to the organization, " said Roraback in a statement. "Ken has been, and always will be, a valued member of the Warner family; he and his wife Betty have been true friends of the theater. We look forward to building on the legacy that people like Mr. Merz created, and securing the future of the theater."

The theatre reportedly posted a $350,000 deficit last year after numerous shows were financial failures and has been trying to turn things around in 2013.

Barry Hughson, executive director of the Boston Ballet and a member of the Warner Theatre's board of corporators, spoke to the Torrington Rotary Club in February and made suggestions for techniques the Warner could use to overcome the struggles they face.

"The global economy has changed and we have to find the new normal," said Hughson. "The costs of producing arts at the highest level are always going to exceed the amount of returned revenue."

Citing how the subscription model, which once kept arts organizations afloat, no longer provides security, Hughson said that the Warner needs to been persistent and consistent with its message to make people understand it's value and continue supporting the venture.

"The only way to compete is to compete," said Hughson, stressing that anchor productions and concerts are key to keep annual finances on track. "That's number one and number two is you have to tell the story. You have to be able to show the value in an institution like the Warner."

According to the press release, Elissa Getto, a consultant hired through Arts Consulting Group, has been working with the Warner officials on a plan for the future and will continue to serve as general manager for the theatre until key management personnel is in place.

The board voted unanimously to establish the recovery team.

Chairs of the team will include Roraback, and Brian Mattiello, of Torrington, among others.